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Paul132(I'm new)I'm new
17 July 2025

My employer has asked me to travel to Switzerland as relief manning for a period of 4 weeks and I will be staying in a Hotel / Short term holiday accomodation for the duration. I will be maintaining a residence back in Australia during this time.


Normally they would pay a daily food allowance and cover all expenses related to work (eg: travelling to and from the accomodation and workplace and related incidentals. They have decided that this falls under the Living Away From Home Allowance (LAFHA) criteria and are going to apply a fixed rate which is to cover food / incidentals / transport etc which is considerably lower than the previous agreement.


My researcher indicates that LAFHA is designed for longer assignments where you are actually living away from home for periods longer than 4 weeks in more of a rental type of accomodation.


Is there a trigger point where you move from a daily allowance (as per my first example) to a LAFHA situation

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5 replies

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PayrollDeanne(Taxicorn)Taxicorn
17 July 2025

Hiya @Paul132 👋


The ATO provides guidance to employers to explain the difference between LAFHA and Travel Allowance.


Naturally, there's a spectrum of circumstances where an employee is required to work away from home, so it is not 'one size fits all' or a definite number of nights away.


If it's a request, then that implies that it depends on your acceptance. Being financially out of pocket would be a valid reason for refusal 🤓


Deanne

Paul132(I'm new)I'm new
17 July 2025

Thanks Deanne,


So is the Travel Allowance only applicable when travelling to and from the location or can it cover the period whilst away (4 weeks). So, in my scenario could the travel allowance be paid for the duration of the assignment or is the LAFHA mandatory

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When is Living Away From Home Allowance applicable | ATO Community